India is expected to receive a 5G network this year in October as the spectrum auction is completed. The Government has managed to garner Rs. 1.50 lakh crore from four companies, including Vodafone-Idea, Reliance Jio, Airtel, and Adani Data Networks.
It is worth noting that the 51,236 MHz band has been sold after 40 rounds out of the total 72,098 MHz spectrum bands. However, allocation of the spectrum will be done by August 10 and services are likely to be launched in October.
“Auction has been completed and in the next few days, till August 10, all formalities, including approving and allocating the spectrum will be done,” Union Minister of Communications, Electronics, and Information Technology Ashwini Vaishnaw was quoted by ANI.
“It seems we would be able to launch 5G in the country by October. The ongoing 5G spectrum auction indicates that the country’s telecom industry has come a long way in 5G advancements,” he added.
The minister further added that the availability of spectrum will boost the services of the telecom sector in India.
Reliance Jio 5G Spectrum Bidding: Details
It is important to note that Reliance Jio is the only telecom operator that made bids close to Rs. 88,078 crores, which is 58.65 percent of the total bidding. Reliance Jio has acquired 24,740 MHz spectrum 700 MHz, 800 MHz, 1800 MHz, 3300 MHz, and 26 GHz.
Notably, Reliance Jio is the only telecom operator that purchased spectrum in the 700MHz band, which analysts believe will give them an upper hand on Airtel and Vodafone-Idea.
“With Jio likely rolling out SA 5G, we believe that Bharti would be under pressure to have a similar network in coming years. In our view, this raises the risk of Bharti acquiring 700 MHz in the next auction (pricing likely to be similar to this auction). Even Capex investments should be higher – first to roll out NSA and then SA 5G,” BofA Securities said in a report.
5G Spectrum Auction: Airtel, Vodafone-Idea, And Adani Data Network Limited
India’s second-largest telecom operator Airtel has spent Rs.43,084 crores to acquire a 19.8 GHz spectrum in the five bands, including, 900 MHz, 1800 MHz, 2100 MHz, 3300 MHz, and 26 GHz.
“Airtel is delighted with the results of the 5G auction. This spectrum acquisition at the latest auction has been a part of a deliberate strategy to buy the best spectrum assets at a substantially lower relative cost compared to our competition,” Gopal Vittal, MD & CEO, Bharti Airtel, said.
On the other hand, Vodafone-Idea has spent only Rs. 18,799 crores for the 1800 MHz, 2100 MHz, 2500 MHz, and 26 GHz bands. Lastly, the Adani Group spent Rs. 212 crores in the auction and that spectrum will be used to provide network solutions for power generation, logistics, airports, and ports, which means that it has no intention of getting into the telecom sector.
